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New Mexico solar 101: must read before you buy solar panels

New Mexico State 33 solar panels available

  • $0.67/W Average gross price of a solar power system as of September 2022
  • 2 years Average system payback period
  • 39 798 / year Average savings from going solar in New Mexico
  • 4 ¢ / kWh Levelized cost of solar energy
  • 3.1 kW Recommended system size

Benefit from a PV system
in New Mexico

Solar panels in New Mexico

New Mexico #2 in the US
Solar Ranking

What our happy customers say

I did business with A1 about half a year ago (it’s september 22 atm) when I needed panels for my home in Phoenix. I took Panasonic, if anyone’s wondering. The system’s doing great, and I think I got really lucky with my installer and the shop as well. If I recall correctly, my order was indeed processed in 24h as promised, delivery took a bit longer than expected but it wasn’t a big deal, these were busy days for fedex. panels were in good shape. I myself checked them thoroughly.
Ryden R
Via Trustpilot
Sep 25, 2022
I like this company. Good service 👍
Daiga Ellaby
Via Google
Sep 19, 2022
i read too much about the broken panels and decided to go with the pickup option. Loved the experience overall. One of their centers was nearby, so I ordered some q cells for myself and drove there. They explained in detail how to drive the package home safely so I was really careful and yeah, now they are in my garage, waiting to be installed. Can’t really complain about anything, panels are fine, the service was cool, and the delivery was on me lol
loken
Via Trustpilot
Sep 19, 2022
So I did order a system, and everything arrived on time, and yes, one panel was broken. But you know what? I’m still going to give them 5 stars. Because 1) they warned me about the possibility of this happening and told me what to do in this case; 2) when I contacted them about it, they handled the situation professionally. I sent them all that they asked for and got a replacement relatively quickly. If it’s anyone’s fault that panels break, then it is the carrier's one. My impression: good service, great prices, commendable customer support.
Will Ghost
Via Trustpilot
Sep 14, 2022
I needed just a couple of panels for the boat, but the staff treated me like I was buying the whole warehouse. I decided to pick the order up myself, their center was within reach. Getting my panels and a Magnum inverter was easier than going for groceries. There is a lot of hard work behind this simplicity. This I know from experience
Filip Scot
Via Trustpilot
Sep 11, 2022
The best-trained salesmen and warehouse workers I've ever encountered. The shop really is excellent. I needed to find some PV modules to replace those in a system that had been running for a while. Because cost was my primary concern, I was ready to settle for less than ideal service. Indeed, it came as a nice shock.
Piter Poti
Via Trustpilot
Sep 11, 2022

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Solar laws, incentives and rebates in New Mexico you need to know

Save 26% of your PV system cost with Federal Solar Tax Credit 

The most important solar incentive that you should definitely make use of is Solar Investment Tax Credit (ITC) program available across all the US. You can deduct 26% of the total cost of your solar system from the income tax. The total solar system cost implies not only on solar panels and accessories, but also on shipping and installation costs. To claim the ITC, you need to have your solar system installed before 2022, complete all the necessary forms and submit them when filing your taxes.

Revived New Mexico Solar Tax Credit saves you another 10% of the system’s cost

Once having expired in 2016, the “New” Solar Market Development Income Tax Credit has been effective again since March 2020. Just like with the ITC, you can save up to 10% of your system’s cost, but no more than $6,000. Even if your tax liability is less than the credit amount, you can roll over what is left into the next 5 years. Complete all the necessary forms and submit them when filing your taxes. The overall credit for this program is limited to $8,000,000 annually, so it makes sense to apply early in the year. Don’t forget that you can make use of this program independently from the ITC. 

Save hundreds of dollars over the year with Net Metering

If your system is a little too big for your house and produces more energy than you need – it’s actually great news. You can sell that energy with the New Mexico Net Metering Program. If a system is smaller than 10 kW, a utility company can either buy excess electricity from you at the current electricity price or give you credits for the sent kWhs. It is a great opportunity for owners of home installations, since most residential solar systems in New Mexico are 5-6 kW. If a system is bigger than 10 kW, then the surplus energy is purchased at the utility's rate.

Overall, the net metering program allows you to save hundreds of dollars over the year. The rates and special conditions, however, vary from company to company. For example El Paso Electric warns the customers that a system shouldn’t produce more than 120% of their annual energy consumption to be a part of the Net Metering program. Otherwise, load displacement or separate net metering take place. Contact your electric supplier for the latest numbers and rules. 

Overall, the net metering program allows you to save hundreds of dollars over the year. The rates and special conditions, however, vary from company to company. For example El Paso Electric warns the customers that a system shouldn’t produce more than 120% of their annual energy consumption to be a part of the Net Metering program. Otherwise, load displacement or separate net metering take place. Contact your electric supplier for the latest numbers and rules. 

Save additional $100 to $1,000 a year trading SRECs

For generating clean electricity every American can also get Solar Renewable Energy Certificates (SRECs). Unlike with Net Metering, you don’t need to sell any electricity to receive a certificate. One SREC is granted for 1 MW of generated power. A 5kW system can generate over 7 MW over the year, so in theory it’s possible to get 5-7 SRECs in 12 months if you send all your energy into the grid. You can choose to store or sell these certificates using the WREGIS platform. The lifetime of a Renewable Energy Certificate in New Mexico is 4 years. The value of SRECs is always changing, which makes them similar to stock market assets. In New Mexico a SREC can cost around $100—$200 (around 13 cents per kWh). Overall, selling SRECs could bring in from $100 to $1000 annually for a 5kW system. Consult with your installer and utility about participating as all utilities have agreed to keep track of solar energy that the grid receives. To begin storing and trading your credits, you will need an account with Western Renewable Energy Generation Information System (WREGIS).

Save additional $100 to $1,000 a year trading SRECs

For generating clean electricity every American can also get Solar Renewable Energy Certificates (SRECs). Unlike with Net Metering, you don’t need to sell any electricity to receive a certificate. One SREC is granted for 1 MW of generated power. A 5kW system can generate over 7 MW over the year, so in theory it’s possible to get 5-7 SRECs in 12 months if you send all your energy into the grid. You can choose to store or sell these certificates using the WREGIS platform. The lifetime of a Renewable Energy Certificate in New Mexico is 4 years. The value of SRECs is always changing, which makes them similar to stock market assets. In New Mexico a SREC can cost around $100—$200 (around 13 cents per kWh). Overall, selling SRECs could bring in from $100 to $1000 annually for a 5kW system. Consult with your installer and utility about participating as all utilities have agreed to keep track of solar energy that the grid receives. To begin storing and trading your credits, you will need an account with Western Renewable Energy Generation Information System (WREGIS).

Solar panels raise the value of your home, but not the property taxes

In New Mexico solar panels are guaranteed to bring in money. To ensure that, the state established that PV systems don’t increase property asset value, and therefore your property taxes stay the same as if you didn’t have an installation. The exception to the rule are solar elements integrated into windows. But make no mistake: a house with a solar system costs more on the property market. If the property is sold, the value of an installation can be included in future tax assessment.

Make your home sustainable and get more tax credits

In New Mexico you can also get tax credits if your home or an office is considered a sustainable building. The amount of credit depends on square footage and the level of sustainability, and varies from $0.30 to $6.25 per square foot. The program applies both to commercial and residential buildings and ends in 2026. In order to become a part of it, complete an application form and mail it to the Energy, Minerals and Natural Resources department. However, if you already made use of New Mexico Development Income Tax Credit for your solar system, you may not be eligible for this program.

Install your solar panels in New Mexico with no worries

In general, you don't need permission to install solar panels in New Mexico. However, solar laws in New Mexico specify that the installer of a system must have a license from construction industries division (CID) in the EE-98 or ER-1 classification to perform the job. However, you might need a structural analysis of your roof by a licensed engineer to have your solar panels installed if:

  • the dead load of the whole array exceeds 5 lbs per square foot on the roof,
  • point load of solar panels is bigger than 45 lbs on roof construction,
  • total dead load is bigger than 200 lbs on any truss, rafter, or roof joist,
  • you are using a unique roof-mounted design,
  • there are over-spanned trusses, rafters, or roof joists in the roof construction.

Your installer will be able to tell whether these conditions apply to your situation. Otherwise, it is absolutely legal to install solar panels on your house in New Mexico.

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